EBUZZING and TEADS merge with an eye to join the NASDAQ in 2015
· Ebuzzing and Teads group to generate $100 million turnover in 2014
· Going public on the NASDAQ in 2015
· Both entities to remain independent
· Pierre Chappaz named the President and CEO of the group, Loic Soubeyrand remains Teads CEO and Bertrand Quesada becomes Ebuzzing CEO
· Pascal Gauthier, former COO of Criteo and Anthony Rhind, former co-CEO of Havas Digital join Ebuzzing and Teads board
Ebuzzing, one of the world’s fastest growing providers of technology-driven video advertising solutions and Teads, a video ad management supply side platform (SSP) used by hundreds of renowned publishers and networks, announced today the formation of the “Ebuzzing and Teads” group, creating a global leader in video advertising.
Capitalising on the complementary nature of their positioning, the Ebuzzing and Teads group now covers a large percentage of the online video advertising eco-system, and are thus well placed to deliver comprehensive and integrated solutions for advertisers and publishers. The group has over 300 employees based across 10 countries*, including an R&D team of more than one hundred engineers based in France. Its strength lies in its capability and capacity to constantly develop innovative solutions, with the aim of creating more value for its clients. The group’s turnover reached $70 million in 2013, and will exceed $100 million in 2014**.
‘Outstream’ video advertising formats to promote sector growth
With the gradual transition of advertising budgets from TV to online, video has become the fastest growing advertising sector. In 2013, online video advertising spend reached $5 billion, and is expected to exceed $8 billion in 2015***. However potential growth has been restricted due to a lack of quality video editorial content, monetisable by inStream video ads, where video advertising is played before a user is able to access video content.
With this in mind, three years ago both Ebuzzing and Teads simultaneously developed new video advertising formats called Outstream. Outstream is video advertising that sits outside of the video stream and instead is placed within any other type of content. For example, the video content can now be placed between two paragraphs of an article, between two images of a slideshow or in a newsfeed of a social network.
The merger of the two companies will reinforce their global leadership in the video advertising industry.
Teads, the archetypal video SSP programmatic platform
Teads creates and operates several private marketplaces for its publishers (called “VPX”: Video Private Exchange) on which each publisher can manage the monetisation of its video ad inventory in a programmatic or traditional way. Already used by renowned international media groups****, Teads is currently the only existing platform managing and optimising both Instream and OutStreamvideo ad inventory from a single interface.
Loïc Soubeyrand, co-founder and CEO of Teads, explains: “Our SSP video ad platform brings an unprecedented value offering to our prestigious clients globally who can now monetize all types of content with video advertising. Our plan is to double our R&D staff by the end of 2015 to further increase our technological lead and bring additional major innovations to the market as we have always done.”
Going public on the NASDAQ in 2015
The projected growth for 2014, which will boost Ebuzzing and Teads’ combined turnover to over $100 million, means the group is planning on going public on the NASDAQ in 2015. The partner banks will soon be selected for the purpose of this operation.
Pierre Chappaz, President and CEO of the Ebuzzing and Teads group, and Loïc Soubeyrand stated: “We respect each other immensely and the complementary nature of our business models, together with the consolidation of the video advertising market and the desire to create a powerful group at international level naturally brought us together to make this merger happen. This is the beginning of an incredible journey which will benefit our clients, teams and shareholders.”
Pascal Gauthier, former COO of Criteo, enters the board
The group’s board of directors will welcome Pascal Gauthier, formerly COO of Criteo, as well as Anthony Rhind, formerly co-CEO of Havas Digital. Pierre Chappaz, comments: “I’m delighted to be working alongside Pascal again. Since our Kelkoo days, where he had already demonstrated outstanding skill, we have always had a great relationship and I am looking forward to benefiting from his unrivalled experience gained while leading Criteo operations and building the turnover from €2 million to €400 million in just a few years.” Teads’ investors, Partech Ventures and Elaia Partners will also join the board. Marie Ekeland from Elaia Partner, a fund that invested in Criteo in its early stages declares: “The ambition of Ebuzzing and Teads group is to quickly become the Criteo of video. The group has everything required to succeed”.
Created in 2007 by Bertrand Quesada and Pierre Chappaz, Ebuzzing is the world leader of Outstream video advertising distribution. Ebuzzing’s main investors are Lightspeed Ventures, Gimv, TF1 and Pierre Chappaz. It has received a total investment of $47 million.
Created in 2011 by Loïc Soubeyrand, Loïc Jaures and Olivier Reynaud, Teads is the most advanced SSP video platform to manage and optimize all video inventories of renowned online publishers. The company recently raised $5.5 million from Elaia Partners and Partech Ventures funds.
*USA, UK, France, Germany, Italy, Spain, Switzerland, Luxembourg, Mexico and Korea
** proforma numbers
*** US and Europe, source: Cap Gemini Forester Research
**** The Economist, Financial Time, Forbes, Le Monde, Le Figaro, Nikkei, El Mundo, La Stampa, La Repubblica, Ô Globo etc.